LVMH likely to bounce off a key support at 384
Remy Gaussens July 28, 2020 3:38 PM
traders may consider long positions above 384 with July (419) and 2020 tops (436) in sight
LVMH, the world leader in luxury goods, recorded an 84% drop in net profit in the first half of the year to 522 million euros, on revenue down by 27% to 18.39 billion euros. In the second quarter alone, sales fell by 38% on an organic basis. The Group reported that the profitability of the Louis Vuitton, Christian Dior and Moët Hennessy brands remained at a high level. The group expects a gradual recovery in activity in the second half of the year, but has not provided any quantified forecasts.
From a chartist point of view, the stock price opened on Tuesday with a bearish gap, just above a key support area at 384. This level is a tentative bullish channel support, 61.8% retracement of June – July up leg , the 50-day moving average and a long-term congestion area. As a consequence, above 384 a rebound can be expected and traders may consider long positions above 384 with July (419) and 2020 tops (436) in sight. Alternatively, a downside breakout of 384 would trigger a bearish acceleration towards the March to May key resistance at 360 now acting as a support.
Source: GAIN Capital, TradingView
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), GAIN Capital Singapore Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact GAIN Capital Singapore Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither GAIN Capital Singapore Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
GAIN Capital Singapore Pte. Ltd. is not under any obligation to update this report.
Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.
Cryptocurrencies are not legal tender currency and trading of derivatives on Cryptocurrencies are currently not covered under any regulatory regime in Singapore. Consequently, investors should be aware they do not have protection under the Securities and Futures Act (Cap. 289). Please ensure that you are fully aware of the risks.